WESTPORT, Conn., Nov 30, 2004 (BUSINESS WIRE) -- Terex Corporation
today announced that it has signed an agreement to purchase the
Reedrill division of Metso Corporation. Reedrill, headquartered in
Sherman, Texas is a leading manufacturer of surface drilling equipment
for use in the mining, construction and utility industries, with
estimated 2004 revenues of approximately $80 million. This transaction
is anticipated to close at the end of the fourth quarter of 2004.
"The acquisition of Reedrill provides a terrific opportunity for
us," commented Ronald M. DeFeo, Terex Chairman and Chief Executive
Officer. "The acquisition is an excellent fit with Terex's strategy of
product diversity and is a natural extension of our mining and utility
customer offerings. In fact, synergies between Terex and Reedrill were
already materializing, as many of our Terex Utilities dealers have
distribution agreements for the Reedrill products and services." Mr.
DeFeo continued, "The combination of Reedrill with our Materials
Processing & Mining Group will increase our product penetration in the
surface mining arena and allow for more effective use of our worldwide
sales and service network."
Rick Nichols, President - Terex Materials Processing & Mining,
will be responsible for the management and integration of the Reedrill
businesses. Mr. Nichols stated, "The Reedrill product quality is
excellent and the growth opportunities appear to be great. With
Terex's distribution and market breadth, Reedrill should realize
meaningful incremental revenue and profit gains."
Safe Harbor Statement
The above contains forward-looking statements based on Terex's
current expectations and projections about future events. Because
forward-looking statements involve risks and uncertainties, actual
results could differ materially. Such risks and uncertainties, many of
which are beyond Terex's control, include among others: Terex's
business is highly cyclical and weak general economic conditions may
affect the sales of its products and its financial results; the
sensitivity of construction, infrastructure and mining activity and
products produced for the military to interest rates and government
spending; the ability to successfully integrate acquired businesses;
the retention of key management personnel; Terex's businesses are very
competitive and may be affected by pricing, product initiatives and
other actions taken by competitors; the effects of changes in laws and
regulations; Terex's business is international in nature and is
subject to changes in exchange rates between currencies, as well as
international politics; the ability of suppliers to timely supply
Terex parts and components at competitive prices; the financial
condition of suppliers and customers, and their continued access to
capital; Terex's ability to timely manufacture and deliver products to
customers; Terex's significant amount of debt and its need to comply
with restrictive covenants contained in Terex's debt agreements;
compliance with applicable environmental laws and regulations; until
the review by Terex of its intercompany account imbalance is
concluded, no assurance can be given with respect to the financial
statement adjustments, impacts and periods resulting from such review,
nor can there be assurance that additional adjustments to the
financial statements will not be identified; and other factors, risks,
uncertainties more specifically set forth in Terex's public filings
with the SEC. Actual events or the actual future results of Terex may
differ materially from any forward looking statement due to those and
other risks, uncertainties and significant factors. The
forward-looking statements herein speak only as of the date of this
release. Terex expressly disclaims any obligation or undertaking to
release publicly any updates or revisions to any forward-looking
statement included in this release to reflect any changes in Terex's
expectations with regard thereto or any changes in events, conditions,
or circumstances on which any such statement is based.
Terex Corporation is a diversified global manufacturer with 2003
net sales of $3.9 billion. The Company operates in five business
segments: Terex Construction, Terex Cranes, Terex Aerial Work
Platforms, Terex Materials Processing & Mining, and Terex
Roadbuilding, Utility Products and Other. Terex manufactures a broad
range of equipment for use in various industries, including the
construction, infrastructure, quarrying, recycling, surface mining,
shipping, transportation, refining, utility and maintenance
industries. Terex offers a complete line of financial products and
services to assist in the acquisition of Terex equipment through Terex
Financial Services. More information on Terex can be found at
www.terex.com.
SOURCE: Terex Corporation
Terex Corporation
Tom Gelston, 203-222-5943